FG to cut monthly fuel import by $610m – FIRS boss

• Published On: 30 July 2024 at 19:51

Zach Adedeji, Chairman of the Federal Inland Revenue Service, has stated that the federal government will reduce monthly petrol imports by an incredible $610 million by supplying crude oil to Dangote refinery and other local refineries in naira.

According to Nairametrics, Adedeji announced this in a statement on Monday after receiving clearance from the Federal Executive Council.

According to Adedeji, fuel imports cost approximately $660 million per month, or $7.92 billion yearly.

He stated that this new agreement will alleviate foreign exchange pressures by saving the government $610 million per month and $7.92 billion yearly.

"With today's approval by the FEC, led by Mr. President, this has been lowered by at least 90%. Because of what we have today, the transaction will now be in our local currency, not only to Dangote Refinery, but to all local refineries for all of our domestic use, stabilizing the pump price.

"This will also make economic stability a reality by eliminating the need to rely on FX fluctuations.

"To be more specific, one of the most significant benefits is the reduction in foreign exchange pressure." We spend $660 million per month, for a total of $7.92 billion annually.

"With the current approval, this will be reduced to a limit of $50 million every month, which equates to only $600 million annually. This is a 94% reduction, saving us $7.32 billion," the FIRS chief stated.

As previously reported, the Federal Executive Council accepted President Tinubu's plan to sell crude oil to Dangote Refinery and other prospective refineries in naira.

With this step, the federal government intends to stabilize both the dollar-naira exchange rate and gasoline prices.